We have been measuring activities for a long time in HR. In my classes and workshops, I always ask the same question, “So, what are you measuring in HR?” I usually get answers similar to this:

Cost per hire

Time to fill

Turnover (at the organizational level)

Training cost per employee

# of employees trained per year

# accidents

# ER issues

# requisitions filled/recruiter

Don’t get me wrong in order to run an efficient HR department you need metrics just like the ones above. I call those HR tracking metrics; they make sure all our HR trains are running on time and to the right place. That’s great, (here it comes) BUT…those metrics aren’t going to show HR impact or impress the C-Suite. What those metrics show is, “hey, we are doing our job.”

So, the goal is to move from HR metrics to HR analytics. Let’s clear up a couple of definitions:

HR Metrics-are a vital way to quantify the cost and the impact of employee programs and HR processes and to measure the success (or failure) of HR initiatives. They enable a company to track year-to-year trends and changes in these critical variables.

HR Analytics-is the process of combining data mining with business analytics techniques to analyze human resources data. The goal of human resources analytics is to provide an organization with insights for effectively managing employees so that business goals can be reached quickly and efficiently. Analytics is also predictive in nature thus allowing for better business outcomes.

Think about the typical way an organization reports data in regards to organizational turnover. Most companies report turnover at the organizational level. Some HR individuals may breakdown the turnover by department or location. The idea is to think like a marketer and slice and dice the data looking for root cause of turnover. So, you can start looking at turnover by:

Manager

Tenure

Generation

Location

Department

Reason for leaving

Performance level (High performers)

Engagement scores

By taking a more granular approach to analysis you can begin to unfold a “turnover story” that begins to yield “HR Intelligence” rather than just metrics.

Let’s take our example one step further. By applying a few simple statistical tests, using the data most organizations have readily available, you can be predictive about turnover. So, by looking at turnover historically, along with employee performance and engagement data, you can determine who is at risk for leaving the organization. Can you imagine the reaction an HR professional would get by identifying those high performers that were at risk for leaving the organization? Talking about impact!

If your HR Department would like to answer yes to the following questions, then it’s time to get on the analytics train:

What if you are able to develop a “high performer profile” that enables you to hire the right people the first time?

What if you are able to identify your high performers that are at risk for leaving the organization?

What if you are able to determine the HR initiatives that will best contribute to the bottom line?

The next question becomes, how do I make the transition form metrics to analytics?

The first step is you need to make a business case for analytics. The best way to do that is to solve an existing business issue by using analytics. Don’t wait for the business to ask for your data, be proactive and start now. It could be something as simple as “Why are sales down at XYZ location?” By digging into sales, customer, and employee data, you would be amazed at what you find. After, you score a big win, with solving a problem, then leadership will want more and your “credibility” problems will be long gone.

The time is now to move away from metrics and move towards analytics. CEO’s demand for data has never been higher. The focus on high performing talent has never been greater. If HR intends to remain a player…analytics are table stakes.

Cathy Missildine

Cathy Missildine has extensive experience in many areas of strategic Human Resources Management. Cathy has worked closely with executives in the areas of performance, productivity, organizational metrics, training, employee and customer engagement, workforce planning, organizational design and strategic implementation. Her past experience in operations and sales management in the technical, insurance and hospitality industries has given her a broad understanding of business issues and a solid foundation for building performance enhancing systems that support the business.
Cathy is a graduate from Kennesaw State University where she earned an MBA with an emphasis Human Resource Management and Development. She is also a member of the Society for Human Resources Management (SHRM) and holds their professional certification, Senior Professional in Human Resources (SPHR).
Cathy is serving as an adjunct Professor at Kennesaw State University and Emory University where she has taught the HR Certification course for over 10 years. She teaches an online SHRM certification course as well as an in class version. Cathy is a nationally recognized speaker addressing audiences from SHRM, ASTD, and AAHAM.
In May 1997, Cathy and her business partner Barbara Hughes started their own consulting firm, Intellectual Capital Consulting (ICC), specializing in profitability through human capital. Their corporate mission is as follows, “to increase performance through maximizing an organization’s human capital.”
ICC’s clients include: Intercontinental Hotels Group, Mizuno, Genuine Parts Company, Place Properties, Aon, IBM, Hampton Inn, United Way, Vulcan and Southern Company.
Cathy also serves on the Board of Directors for Samaritan House a non-profit organization helping homeless men and women return to the workforce.
Read Cathy's Posts on HRExaminer here »
Cathy's website www.intellectual-capital.net

Recent Comments

Archives

Archives

HR Open Source

HR Open Source is a volunteer not-for-profit community bringing open source learning approaches to the global field HR and recruiting.

Our intention is transform the field of HR to become more strategic and innovative by democratizing access to ideas, education, and inspiration. Simply put, to make it easier for practitioners to access the peers, knowledge, and resources that they need to thrive - at zero cost.

Our long term aim is to develop a global network and knowledge bank of peer-contributed resources that will enable practitioners build better organizations and elevate the field together.